Consider Brexit. Think back to the time when the Brexit referendum happened in the United Kingdom. What was the impact thereafter on the British pound vis-a-vis the US dollar? Was there increased confidence in the British pound or decreased confidence in the British pound? Explain your answer.

Using two graphs of British foreign exchange market, with each graph showing a different possible shift that could occur in that particular forex market, show how the equilibrium exchange rate changed vis-a?-vis the US dollar. You can use an initial rate of about US$1.50 per British pound (£). Label your graphs fully and explain the reason for your shifts.